Quadrant Private Equity Plans Burson IPO

Australia’s Quadrant Private Equity has appointed Morgan Stanley and UBS AG for the initial public offering of Burson Auto Parts, a person familiar with the matter said Monday, just two years after acquiring the retailer.

Burson sells automotive parts and accessories from brake pads to wiper blades from its 110 stores, primarily on Australia’s east coast. Around 300 million Australian dollars (US$290 million) could be raised from the IPO, which is slated for the first quarter of 2014, the person said.

Burson Auto Parts is forecast to deliver earnings before interest, tax, depreciation and amortization of between A$40 million and A$45 million in the fiscal year ending June 30, 2015, the person said.

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Quadrant acquired Burson Auto Parts for A$148 million in 2011. An IPO of the company will follow two public market exits by the Sydney-based private equity firm.

Fertility services provider Virtus Health Ltd. has rallied 57% since Quadrant sold down its stake in June, while retirement village operator Summerset Group Holdings Ltd. has more than doubled since Quadrant listed it in 2011.

Automotive parts have proven to be a happy hunting ground for private-equity firms in Australia. In March, Hong Kong-based private-equity firm Unitas Capital agreed to sell Exego Group, which supplies car parts, to Atlanta-based Genuine Parts Co. In August, U.S. private-equity firm Clearlake Capital Group LP made its first investment down under by snapping up a component supplier.